MIRA INFORM REPORT

 

 

Report Date :

28.02.2011

 

IDENTIFICATION DETAILS

 

Name :

ITOCHU CORPORATION

 

 

Registered Office :

2-5-1 Kitaaoyama Minatoku Tokyo 107-8807

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

December 1949

 

 

Com. Reg. No.:

(Osaka-Chuoku) 002849

 

 

Legal Form :

Limited Company

 

 

Line of Business :

General Trading House

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

Yen 187,207.5 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

-----

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

A1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name

 

ITOCHU CORPORATION

 

 

REGD NAME

 

Itochu Shoji KK

 

 

MAIN OFFICE

 

(Tokyo) 2-5-1 Kitaaoyama Minatoku Tokyo 107-8807 JAPAN

Tel: 03-3497-2121     Fax: 03-3497-4141

 

(Osaka) 4-1-3 Kyutaromachi Chuoku Osaka 541-8577

Tel: 06-6241-2121     Fax: 06-6241-3220

 

URL:                             www.itochu.co.jp/

E-Mail address:                        webmaster@itochu.co.jp

 

 

ACTIVITIES  

 

General trading house

 

 

BRANCHES   

 

Osaka, Nagoya, Fukuoka, Hiroshima, Sapporo, other (Tot 15)

 

 

OVERSEAS

 

USA, Europe, China, other (Tot 133 over 80 countries)

 

 

CHIEF EXEC 

 

MASAHIRO OKAFUJI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

SUMMARY    

 

FINANCES                    FAIR                 A/SALES          Yen 106,306,799 M

PAYMENTS      REGULAR         CAPITAL           Yen 202,241 M

TREND             SLOW              WORTH            Yen 1,311,353 M

STARTED                     1949                 EMPLOYES      62,787

 

 

COMMENT    

 

NATION’S LEADING GENERAL TRADING HOUSE.

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

MAX CREDIT LIMIT: YEN 187,207.5 MILLION, 30 DAYS NORMAL TERMS.

 

 

                           Forecast (or estimated) figures for 31/03/2011 fiscal term

 

 

HIGHLIGHTS

           

This is major general trading house, currently top textile trader among domestic trading companies, with comprehensive strength in all areas of the textile industry from upstream to down-stream operations, while actively trying to expand into textile retailing.  Also strong in food industry, machinery plants, chemicals, energy and condominiums.  Further aggressive in satellite communications to lead other trading houses in telecom & China businesses.  Has stake in Perfect TV satellite broadcaster.  Implemented independently managed “division company system” in Apr 1997. (See OPERATION).  Acquired 3% stake in UNY, general supermarket operator based in Tokai area for collaboration in merchandise development and operation in China.  Constructing export terminals on West Coast jointly with major US grain firm as strategic base for export to China & other Asian countries. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2010 fiscal term amounted to Yen 10,306,799 million, a 14.6% down from Yen 12,065,109 million in the previous term.  Business was substantially affected by the global economic downturn particularly in the first half of the term.  High Yen eroded earnings and profits in Yen terms.  The recurring profit was posted at Yen 154,986 million and the net profit at Yen 128,153 million, respectively, compared with Yen 208,256 million recurring profit and Yen 165,390 million net profit, respectively, a year ago.

 

(Apr/Dec/2010 results): Sales Yen 8,505,126 million (up 13.4%), operating profit Yen 179,031 million (up 91.5%), recurring profit Yen 147,617 million (up 43.3%), net profit Yen 145,337 million (up 80.3%).  (% compared with the corresponding period a year ago). 

 

For the current term ending Mar 2011 the recurring profit is projected at Yen 220,000 million and the net profit at Yen 180,000 million, respectively, on an 11.6% rise in turnover, to Yen 11,500,000 million.  Sales of iron ores and metal resources will lead the profit recovery on higher selling prices.  Sales of consumer products & chemicals will be strong.  Foodstuffs & textile sales will solid.

                       

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 187,207.5 million, on 30 days normal terms.        

 

 

REGISTRATION

           

Date Registered:          Dec 1949

Regd No.:                                 (Osaka-Chuoku) 002849

Legal Status:               Limited Company (Kabushiki Kaisha)

Authorized:                  3,000 million shares

Issued:                         1,584,889,504 shares

Sum:                            Yen 202,241 million

           

Major shareholders (%): Japan Trustee Services Bank T (6.8), Master Trust Bank of Japan T (4.8), Mitsui Sumitomo Ins (2.5), Nippon Koa Ins (2.3), State Street Bank & Trust (2.2), Tokio Marine & Nichido Fire Ins (2.1), Japan Trustee Services T9 (1.9), Asahi Life Ins (1.7), SSBT OD05 Omnibus Acct (1.4); foreign owners (36.5)

           

No. of shareholders: 100,767

 

Listed on the S/Exchange (s) of: Tokyo, Osaka, Sapporo, Nagoya, Fukuoka

 

Managements: Eizo Kobayashi, ch; Kohei Watanabe, v ch; Masahiro Okafuji, pres; Yoichi Kobayashi, dir; Yoshihisa Aoki, dir; Tadayuki Seki, dir; Hiroo Inoue, dir; Kenji Okada, dir; Koji Takayanagi, dir; Satoshi Kikuchi, dir

 

Nothing detrimental is known as to the commercial morality of executives.

 

Related companies: Itochu Techno Solutions, Itochu Shokuhin, other

           

 

OPERATION

           

Activities: Activities: A general trading house; Sales breakdown by divisions:

 

Textile Company (5%): Raw cotton, Cotton yarns, Wool, yarns, Rayon staple, Spun rayon yarns, Rayon yarns, Synthetic staple, Synthetic filament, Cotton fabrics, Wool fabrics, Silk fabrics, Rayon fabrics, Spun rayon fabrics, Synthetic filament fabrics, Knit fabrics, Knit outer garments, Knit under garments, Woven outer garments, Woven under garments, Other garments, Secondary textile products, Imported sundries, Bedding fabrics, Interior fabrics, Industrial fibres, Inorganic fibres and related products, etc.

 

Machinery Company (7%): Civil engineering, Construction, Mining and related materials handling machinery, Agricultural machinery, Metalworking and processing machinery and plant, Forging machinery, Textile machinery, Semiconductor manufacturing equipment, Automobile parts manufacturing plant, Plant related to the iron and steel industry, Cement plant, Food machinery, Grain silos, Hospital equipment, Oil, gas, and chemical plants, Passenger vehicles, Commercial vehicles, Automobile parts and equipment, Special-purpose vehicles, Rolling stock, Ships, Power generating equipment, etc.

 

Aerospace, Electronics & Multimedia Company (6%): Satellite communications, International telecommunications, Terminals and peripheral equipment for broadcasting and communications systems, Entertainment and content business, Systems and related machinery for mobile telephones, Systems and related equipment for computer and information processing, Semiconductor equipment, Aircraft, In-flight equipment, Space-related equipment, Security equipment etc.

 

Energy, Metals & Minerals Company (32%): Iron ore, Direct reduced iron, Coking coal, Coke, Thermal coal, Ferro alloy and its materials, Ferrous scrap, Pig iron, Metal powder, Electrodes, Activated carbon, Steel plates, Hot & cold rolled sheets and coils, Galvanized steel, Steel for machinery, Stainless steel, High tensile steel, Construction materials, Welded steel pipes, Seamless steel pipes, Steel wires, Marine steel structures, Bridges, Prefabricated steel for buildings, Rails, Non-ferrous metals, Precious metals, Rare metals, Aluminium, Crude oil, Natural gas liquid (NGL), Gasoline, Naphtha, Kerosene, Jet fuel, Gas oil, Fuel oil, Bunker oil, Lubricant, Asphalt, Liquefied petroleum gas (LPG), Liquefied natural gas (LNG), Nuclear fuel (uranium concentrates, uranium hexafluoride), Nuclear power related equipment

 

Chemicals, Forest Products & General Merchandise Company (17%): Logs, Lumber, Wooden building materials, Wood chips, Wood pulp, Recycled paper, Cotton linter, Paper, Paperboard, Paper products, Natural rubber, Tyres, Footwear, Furniture, Glass, Cement crysotile, Landscape materials, Refractory materials and products, Natural gypsum, etc.


Chemical feedstock, Olefin, Aromatics, Raw materials for synthetic resins, Tar chemicals, Raw materials for synthetic fibres, Organic chemicals, Methanol, Ethanol, Solvents, Specialty chemicals, Inorganic chemicals, Chemical fertilizers, Vinyl chloride, Polyolefin, Synthetic rubbers, Carbon black, Thermoplastic and thermosetting resins, Resin additives, Glass fibres, etc.

 

Food Company (29%): Wheat, Barley, Wheat flour, Rice, Starches, Soybeans, Sunflower oil, Olive oil, Palm oil, Coconut oil, Corn, Soybean meal, Rapeseed meal, Fish meal, Alfalfa pellets, Raw sugar, Sweeteners, High-fructose corn syrup, Dairy products, Nuts, Coffee, Cocoa, Fruit juice, Liquor, Soft drinks, Beef, Pork, Chicken, Fruits and vegetables, Processed foods, Frozen foods, Canned foods, Pet foods, Consulting services for food business.

 

Finance, Realty, Insurance & Logistics Services Company (4%): Finance: Foreign exchange and securities trading, securities and fund investment, asset management (including structuring and sales of financial products), lending, online securities broking, other financial services; Realty: Planning, developing, constructing, contracting, managing, operating, selling related facilities and materials for residential housing, office buildings, resort facilities, golf courses, industrial parks, hotels; Insurance: Insurance and reinsurance agency, broking of insurance and reinsurance, consulting of insurance and reinsurance; Logistics services: Warehousing, trucking, operation of logistics centres, chartering, international intermodal transport, air cargo, travel services, distribution processing, freight forwarding, customs clearance, etc.

Overseas trading ratio: (42%)

 

Clients: [Wholesalers, mfrs] Itochu Shokuhin, Yukijirushi Access Inc, Nisseki Itochu, Nishino Trading, Prima Meat Packers, other.

            No. of accounts: 3,000

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers, carmakers] Mazda Motor, Nippon Steel, Isuzu Motors, Nissin Food Products, JGC Corp, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

Bank References:

Mizuho Corporate Bank (Uchisaiwaicho)

SMBC (H/O)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2010

31/03/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

10,306,799

12,065,109

 

  Cost of Sales

9,382,433

11,004,588

 

      GROSS PROFIT

924,366

1,060,521

 

  Selling & Adm Costs

776,952

784,857

 

      OPERATING PROFIT

147,414

275,664

 

  Non-Operating P/L

7,574

-67,406

 

      RECURRING PROFIT

154,988

208,258

　

      NET PROFIT

128,153

165,390

BALANCE SHEET

 

 

 

 

  Cash

　

475,674

628,820

 

  Receivables

 

1,287,821

1,135,031

 

  Inventory

 

476,066

509,503

 

  Securities, Marketable

7,140

9,214

 

  Other Current Assets

646,780

655,626

 

      TOTAL CURRENT ASSETS

2,893,481

2,938,194

 

  Property & Equipment

666,351

560,774

 

  Intangibles

 

308,427

280,817

 

  Investments, Other Fixed Assets

1,608,588

1,412,307

 

      TOTAL ASSETS

5,476,847

5,192,092

 

  Payables

 

1,217,599

1,041,740

 

  Short-Term Bank Loans

229,236

538,161

 

　

 

　

　

 

  Other Current Liabs

545,723

568,216

 

      TOTAL CURRENT LIABS

1,992,558

2,148,117

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

2,107,589

1,934,421

 

  Reserve for Retirement Allw

43,314

54,697

 

  Other Debts

　

22,033

17,502

 

      TOTAL LIABILITIES

4,165,494

4,154,737

 

      MINORITY INTERESTS

 

 

 

Common stock

202,241

202,241

 

Additional paid-in capital

137,506

137,171

 

Retained earnings

900,397

796,882

 

Evaluation p/l on investments/securities

40,544

13,686

 

Others

 

33,352

(109,914)

 

Treasury stock, at cost

(2,687)

(2,711)

 

      TOTAL S/HOLDERS` EQUITY

1,311,353

1,037,355

　

      TOTAL EQUITIES

5,476,847

5,192,092

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2010

31/03/2009

 

Cash Flows from Operating Activities

　

295,376

276,854

 

Cash Flows from Investment Activities

-196,318

-326,033

 

Cash Flows from Financing Activities

-258,987

258,322

　

Cash, Bank Deposits at the Term End

　

475,674

628,820

ANALYTICAL RATIOS            Terms ending:

31/03/2010

31/03/2009

 

 

Net Worth (S/Holders' Equity)

1,311,353

1,037,355

 

 

Current Ratio (%)

145.21

136.78

 

 

Net Worth Ratio (%)

23.94

19.98

 

 

Recurring Profit Ratio (%)

1.50

1.73

 

 

Net Profit Ratio (%)

1.24

1.37

 

 

Return On Equity (%)

9.77

15.94

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.37

UK Pound

1

Rs.73.25

Euro

1

Rs.62.68

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.